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Key Responsibilities and Required Skills for AR Specialist

💰 $45,000 - $75,000

AccountingFinanceAccounts ReceivableBillingAR Specialist

🎯 Role Definition

The Accounts Receivable (AR) Specialist is responsible for end-to-end AR operations including invoice preparation, timely collections, cash application, dispute resolution, and reconciliation of customer accounts. This role ensures accurate recording of receivables, maintains AR aging below target thresholds, supports month-end and quarter-end closes, and partners with sales and customer service teams to resolve billing discrepancies. The AR Specialist continuously identifies process improvements to accelerate cash flow, strengthen internal controls, and provide actionable reporting and KPIs (DSO, aging buckets, unapplied cash).

📈 Career Progression

Typical Career Path

Entry Point From:

  • Accounts Receivable Clerk / Billing Clerk
  • Accounting Assistant / Accounts Payable Clerk
  • Customer Billing Representative

Advancement To:

  • Senior AR Specialist / AR Lead
  • AR Supervisor / AR Manager
  • Credit & Collections Manager
  • Accounting Manager or Controller (with broader accounting experience)

Lateral Moves:

  • Credit Analyst
  • Billing / Revenue Analyst
  • Treasury Specialist
  • Collections Specialist

Core Responsibilities

Primary Functions

  • Prepare, generate and deliver accurate customer invoices (electronic and paper) on schedule, ensuring proper billing codes, tax treatment, and contract compliance to minimize billing disputes.
  • Monitor AR aging daily and proactively target past-due accounts using structured collection strategies to reduce Days Sales Outstanding (DSO) and improve cash flow.
  • Apply customer payments (electronic payments, checks, ACH, wire transfers, credit card receipts) to open invoices in the ERP system, resolving unapplied cash and short pays promptly.
  • Investigate and resolve invoice disputes and billing discrepancies by collaborating with sales, customer service, and operations; document root causes and corrective actions.
  • Reconcile AR sub-ledgers to the general ledger monthly, prepare journal entries for write-offs, credit memos, and adjustments in accordance with company policy and GAAP.
  • Manage credit holds and release procedures in partnership with credit and sales teams, performing credit checks and assessing payment terms for new and existing customers.
  • Conduct regular customer account analyses and prepare AR aging reports segmented by customer, region, product line and sales representative for senior management review.
  • Execute month-end and quarter-end close activities related to AR, including cut-off testing, account reconciliations, revenue/receivable confirmations and accrual calculations.
  • Prepare and support external and internal audits (including SOX testing) by providing documentation, reconciliations, system access logs and control narratives for AR processes.
  • Process and reconcile customer remittance advices and lockbox deposits; maintain remittance processing controls to ensure timely cash posting.
  • Maintain accurate customer master data in ERP (billing address, payment terms, tax IDs); request and verify W-9s and tax exemption certificates as needed.
  • Initiate and negotiate payment plans for delinquent accounts, escalating complex collections to credit or legal teams while documenting payment agreements.
  • Create and maintain standard operating procedures (SOPs) and detailed process flows for invoicing, cash application and collections to enable consistent execution and training.
  • Generate and distribute weekly/monthly AR KPIs and dashboards (aging by bucket, DSO, collections effectiveness index, dispute volume) using Excel, Power BI or ERP reporting tools.
  • Manage chargebacks, short payments and credits, ensuring supporting documentation is collected, approvals are obtained, and adjustments are posted timely.
  • Support implementation, testing and optimization of ERP systems, billing engines or cash application automation tools (lockbox, EFT/ACH matching, robotic process automation).
  • Train and mentor junior AR staff on billing policies, collection techniques, systems usage and customer interaction best practices to improve team performance.
  • Research and clear unapplied cash, unidentified remittances and payment variances by liaising with banks, customers and internal stakeholders.
  • Coordinate account reconciliations and customer confirmations for audit-ready financial close; action reconciling items and follow up until resolution.
  • Ensure compliance with company credit policies, internal controls, and regulatory requirements (sales tax, VAT, GST) affecting receivables.
  • Prepare bad debt provisions, analyze collectability trends and recommend write-offs and allowance adjustments in coordination with accounting leadership.
  • Serve as primary point of contact for customer billing inquiries and escalations, delivering professional, timely and solution-oriented responses to preserve relationships.

Secondary Functions

  • Participate in cross-functional projects to streamline order-to-cash processes, reduce manual effort and improve customer experience.
  • Support ad-hoc financial analyses to quantify the impact of pricing changes, cash collection strategies and credit policy updates on working capital.
  • Contribute to the organization's AR automation roadmap: evaluate tools for electronic invoicing, lockbox enhancements, and auto-match solutions.
  • Collaborate with sales operations and contracting teams to validate billing terms, contract renewals, and pricing configurations prior to invoicing.
  • Assist treasury with cash forecasting by providing short-term receivables inflow estimates and expected collection timelines.
  • Maintain communication templates and escalation matrices for collections campaigns, ensuring consistent messaging and compliance with regulations.
  • Participate in sprint planning and agile ceremonies when working with IT/ERP implementation teams to deliver AR system improvements.
  • Support corporate initiatives involving customer onboarding, tax setup, and KYC (Know Your Customer) documentation collection.
  • Help prepare training materials, process documentation and knowledge base articles for cross-training and new hire onboarding.
  • Analyze customer payment behavior and propose targeted incentives (discounts, payment term adjustments) to accelerate cash receipts.

Required Skills & Competencies

Hard Skills (Technical)

  • Accounts Receivable management: invoicing, collections, cash application, AR aging and reconciliations
  • ERP proficiency: NetSuite, Oracle EBS, SAP S/4HANA, Microsoft Dynamics or comparable systems
  • Advanced Excel skills: VLOOKUP/XLOOKUP, pivot tables, INDEX/MATCH, data cleansing and macros for reconciliation and reporting
  • Electronic payment processing and lockbox experience; familiarity with ACH, wire, credit card processing and remittance formats
  • AR automation and reconciliation tools: experience with high-volume cash application tools, EDI invoicing, Remittance Matching, or RPA
  • Financial controls and compliance: SOX controls, internal controls documentation, audit support
  • General ledger and journal entries: posting adjustments, write-offs, bad debt provisions and month-end close support
  • Reporting & analytics: building dashboards and KPIs using Power BI, Tableau or ERP BI modules
  • Billing systems and subscription/recurring revenue platforms (if applicable)
  • Customer data management: maintaining accurate customer master files, tax IDs, payment terms and credit limits
  • Basic SQL or data query skills (preferred) to extract transactional data for analysis and reporting
  • Familiarity with credit assessment tools and basic credit analysis principles

Soft Skills

  • Strong verbal and written communication skills for effective customer outreach and internal collaboration
  • Customer-service orientation with diplomacy and the ability to de-escalate disputes
  • Problem-solving mindset with attention to detail and high accuracy under pressure
  • Time management and prioritization skills to balance high-volume transaction processing and collections
  • Negotiation skills to arrange payment plans and collect past-due balances while protecting relationships
  • Team player with ability to work cross-functionally (Sales, Treasury, Credit, IT)
  • Adaptability to changing systems, processes and business requirements
  • Analytical mindset to identify trends, root causes, and continuous improvement opportunities
  • Professionalism and ethics handling sensitive financial information
  • Initiative to propose process improvements and automation opportunities

Education & Experience

Educational Background

Minimum Education:

  • Associate degree in Accounting, Finance, Business Administration or equivalent experience.

Preferred Education:

  • Bachelor’s degree in Accounting, Finance, or Business Administration.

Relevant Fields of Study:

  • Accounting
  • Finance
  • Business Administration
  • Economics
  • Information Systems (with accounting focus)

Experience Requirements

Typical Experience Range:

  • 2 to 5 years of hands-on accounts receivable, billing or collections experience in a corporate or shared services environment.

Preferred:

  • 3+ years experience in AR within mid-market or enterprise environments; experience with NetSuite, Oracle, SAP or similar ERPs.
  • Experience supporting SOX-compliant controls, external audits and month-end close cycles.
  • Experience in B2B billing, complex contract billing or subscription revenue environment is a plus.
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